Summit Hotel Properties (INN) closes $822 million NewcrestImage portfolio.

Summit Hotel Properties, Inc. (INN) announced today that it has closed on the acquisition of a 27-hotel portfolio from affiliates of NewcrestImage.  The total consideration of $822 million includes $776.5 million for the hotels, $24.8 million for two parking structures, and $20.7 million for various financial incentives.  The portfolio is being acquired in partnership with GIC where Summit will own 51% of the equity and GIC 49%.

The portfolio is being partially financed with a $410 million four-year term loan with a one-year extension option (BofA/Wells).  Summit's equity contribution was said to include $160 million of common operating partnership units and $50 million of 5.25% preferred partnership units.  GIC's equity contribution was made in cash.

Summit Hotel Properties is an equity REIT focusing on the ownership of upscale hotels in major markets across the U.S. As of September 30, 2021, the portfolio included 73 properties in 23 states with an aggregate 11,398 hotel rooms. INN is a member of the S&P SmallCap 600 index with a total market capitalization of $2.5 billion.